Kraken, a crypto exchange, announced the full delisting of five stablecoins, including USDT, in the European Economic Area due to regulatory changes.
Kraken's Phased Delisting Strategy
Kraken will remove support for Tether USDt (USDT), PayPal USD (PYUSD), Tether EURt (EURT), TrueUSD (TUSD), and TerraClassicUSD (UST) in Europe. The delisting process involves multiple stages. On February 13, margin trading pairs will shift to 'reduce-only' mode. By February 27, all tokens will enter 'sell-only' mode. On March 24, spot trading of these stablecoins will be suspended. Finally, on March 31, any remaining balances will be automatically converted into a MiCA-compliant stablecoin.
MiCA's Ripple Effect: Crypto.com Follows Suit
Following Kraken's lead, Crypto.com has also taken steps to remove USDT and nine other non-MiCA-compliant stablecoins. Users are required to convert their holdings by Q1 2025 or face automatic conversion into MiCA-compliant assets.
Tether Fires Back at MiCA’s Impact
Tether has expressed strong opposition to the rapid implementation of MiCA, arguing it could increase risks for EU consumers. A Tether spokesperson warned that these measures may lead to market instability.
The new MiCA regulation is significantly altering the European crypto landscape, compelling major exchanges like Kraken and Crypto.com to adapt and comply with the new rules.
